CHICAGO, June 19 /PRNewswire-FirstCall/ -- Grainger, North America's
leading broad line distributor of facilities maintenance products, today
announced it plans to become a 53% majority owner of MonotaRO, a direct
marketer of maintenance, repair and operating (MRO) supplies in Japan.
Grainger expects to invest approximately $4M through a tender offer bid
process later this summer.
Established in 2000 in Osaka, MonotaRO started as a joint venture company
between Grainger and Sumitomo Corporation supplying MRO products in Japan.
MonotaRO has successfully innovated in the Japanese MRO market, the second
largest industrial market in the world, offering more than 110,000 products to
more than 320,000 customers. In 2008, MonotaRO had revenues of $136M and
operating earnings of $11 million.
"We are excited about the opportunity to increase our ownership of
MonotaRO. The Japanese MRO market is estimated at $50 billion and MonotaRO has
been growing by helping thousands of small and mid-size businesses get the
quality products they need to keep their facilities running," said Grainger's
Chairman, President and Chief Executive Officer Jim Ryan. "This increased
investment, along with our recent acquisition of Asia Pacific Brands India
Private Limited demonstrates Grainger's commitment to grow its global
presence. Our global supply chain scale and strong supplier relationships
developed throughout Asia enable us to deliver what customers need. We plan to
continue to pursue attractive opportunities in global markets."
MonotaRO is traded on the Mothers market of the Tokyo Stock Exchange and
is seeking to transfer its listing to the TSE 1st Section. In anticipation of
the transfer, on June 19, MonotaRO announced it would be calling a shareholder
meeting in late July to authorize the repurchase of 1.83 million shares.
Assuming MonotaRO's shareholders approve the repurchase, Grainger plans to
initiate a tender offer bid in August for 380,000 shares, allowing Grainger to
achieve a 53% majority interest in MonotaRO. The tender is anticipated to be
completed in the third quarter.
Upon completion of MonotaRO's repurchase of approximately 1.83 million
shares, Grainger's ownership would increase from 38% to 48%. In early August,
Grainger plans to tender in Japan for 380,000 shares, approximately 5% of
MonotaRO shares, at a price of 1,010 Yen per common share and has an agreement
with Sumitomo Corporation which will commit 380,000 shares.
About Grainger
W.W. Grainger, Inc. (NYSE: GWW), with 2008 sales of $6.9 billion, is a
leading broad line supplier of facilities maintenance products serving
businesses and institutions in the United States, Canada, Mexico, China and
Panama. Through a highly integrated network including more than 600 branches,
18 distribution centers and multiple Web sites, Grainger's employees help
customers get the job done.
Forward-Looking Statements
This document contains forward-looking statements under the federal
securities law. Forward-looking statements relate to the company's expected
future financial results and business plans, strategies and objectives and are
not historical facts. They are generally identified by qualifiers such as
"achieve", "anticipated", "assuming", "expects", "plan to continue", "plans",
"to increase", "would" or similar expressions. There are risks and
uncertainties the outcome of which could cause the company's results to differ
materially from what is projected. The forward-looking statements should be
read in conjunction with the company's most recent annual report, as well as
the company's Form 10-K, Form 10-Q and other reports filed with the Securities
& Exchange Commission, containing a discussion of the company's business and
various factors that may affect it.
CONTACT:
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+1-847-535-4339
Erin Ptacek
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Reputation
+1-847-535-1543
Investors
Laura Brown
Vice President,
Investor Relations
+1-847-535-0409
William Chapman
Director, Investor
Relations
+1-847-535-0881
All of W.W. Grainger, Inc.